The World Wide Web has made it easy for consumers and merchants to find each other. Consumers utilize search engines and keyword searches to identify merchants of desired goods and services, and then websites and other on-line research tools allow consumers to sift through the results to find what they are looking for. For merchants, sponsored searches and pay for placement advertising allow merchants to get their products and services in front of target consumers, i.e., consumers who have already indicated an interest in those products or services.
In the pay for placement model, merchants may subscribe with an enterprise service provider for presentation of their advertisements in response to a given search query. In particular, a merchant may set up the subscription by specifying keywords relating to their goods/services, so that when a consumer performs a search including these keywords, the merchant's advertisement is presented along with the rest of the search results. The merchant is typically billed in a pay-per-click (PPC) model, where the merchant is charged each time a consumer selects the merchant's advertisement by clicking on it and being transferred to the merchant's site (or otherwise provided with information of the merchant's choosing). The number of times that an advertisement is clicked on, divided by the number of times that the advertisement appears, is referred to as the click through rate (CTR) for the advertisement.
Merchants have become sophisticated in their advertising techniques. Many merchants employ software tools and operational resources in an attempt to accurately and regularly track the CTR and success rate of their advertisements. Merchants are constantly seeking new and improved methods for obtaining information about their advertising campaigns and target audience in an attempt to maximize their advertising exposure to their target audience, and the return on their advertising dollars.
Despite the ubiquity of the Internet as an advertising tool, many consumers still prefer to speak to a live person at the merchant's place of business, to find out additional information and complete a sale. While traditional public switched telephone networks (PSTN) are still the preferred mode of telephone communication, voice over IP (VoIP) is gaining in popularity. VoIP operates by delivering voice information over the Internet using the Internet Protocol (IP), which sends voice information in digital form in discrete packets rather than in the traditional circuit-committed protocols of the PSTN.
On-line advertising has expanded to take advantage of VoIP. For example, in the click-to-call (C2C) model, a user can locate an advertiser, either through unsponsored search results or via the sponsored PPC model, and then click on a provided telephone number to connect to the merchant using IP telephony. As the majority of merchants receive telephone calls using traditional PSTN telephones, the C2C model generally results in telephone charges to the consumer. Often, a consumer will decide not to call a merchant because the consumer does not want to incur the telephone charges. By not receiving these calls, at least a portion of which would have resulted in sales, the merchant is losing potential revenue.
To entice more consumers to call, a merchant can purchase a toll free phone number from a telecommunications service provider and thus pay for incoming calls on behalf of customers. Toll free phone numbers are expensive however, and their costs difficult to contain. If more customers call the toll free number, or if calls last longer than expected, merchants may be left with significant unanticipated costs to cover. As a result, the merchant is exposed to competitors exploiting the service and harming the merchant financially by misusing the service and causing false charges. There is, therefore, a need to address this matter.